Movie Gallery to Sublease Store Space15 Mar, 2006 By: Jessica Wolf
Movie Gallery is looking to increase foot traffic and generate incremental revenue by subleasing store space from 2,200 existing Movie Gallery and Hollywood Video stores to Excess Space Retail Services Inc.
The two companies have entered into a management agreement that would allow Excess Space to broker and manage retail partnerships for the Dothan, Ala.-based rental chain. The company estimates these partnerships will occupy about 2,500 square feet at each of the involved Movie Gallery locations.
"We look forward to working with the professionals at Excess Space to identify and partner with other retailers that can benefit from our premier portfolio of retail locations across North America," said Keith Cousins, EVP and chief development officer for Movie Gallery. "By taking advantage of our outstanding retail presence, we expect this initiative to improve our operating results and create value for our shareholders."Excess Space's client list also includes Autozone, Walgreens, Kmart, Kroger, Fred Meyer, Sports Authority, Petsmart, JC Penny and others.